After a rough couple of years, CSL Ltd (ASX: CSL) is getting some attention from Australia’s fund managers.

According to The Australian, new research from Morgan Stanley shows fundies been making some interesting changes to their portfolios.

And CSL is one of the stocks they’ve been buying.

CSL shares are currently down 0.40% to $178.41 in morning trade, following yesterday’s close of $179.12.

So, what are fund managers seeing in CSL?

CSL takes the top spot

Morgan Stanley’s research found healthcare extended its lead as the most favoured sector among Australian active fund managers during August.

CSL saw a significant increase in fund holdings, pushing it into the top spot among active positions.

An active overweight means a fund holds a larger weighting in a stock than it has in its benchmark index.

But it was a different story for some of the other bigger companies.

Managers remained underweight financials, particularly the major banks, although insurance stocks continued to attract interest.

In resources, managers increased their underweight position in BHP Group Ltd (ASX: BHP).

They also reduced their overweight exposure to Rio Tinto Ltd (ASX: RIO), while adding to gold holdings.

What’s behind the buying?

CSL’s latest results might help explain some of that interest, although there’s still plenty of work to do.

Its FY26 results showed revenue of US$15.8 billion, down 1% in constant currency.

Underlying NPATA fell 2% to US$3.1 billion, while restructuring costs and impairments contributed to a US$2.6 billion statutory loss.

But the business still managed to generate US$3.5 billion in operating cash flow.

CSL also completed an $1 billion share buyback during FY26 and announced another program worth up to $1.15 billion.

There’s also continued demand for immunoglobulin treatments, while sales of newer therapies Andembry and Hemgenix are growing.

Andembry generated US$240 million in sales during its first full year, while Hemgenix sales increased 25%.

What happens next for CSL shares?

CSL expects revenue to remain broadly unchanged in FY27, with underlying net profit forecast to grow approximately 5% in constant currency.

Its Behring division is targeting mid to single digit revenue growth, while Seqirus expects low to single digit growth.

However, Vifor remains a challenge, with revenue expected to decline approximately 25% amid generic competition and other product-related issues.

Brokers are also divided on where CSL shares could go from here.

Morgan Stanley has a $182 price target, while RBC Capital Markets is more optimistic at $213. Citi is more cautious at $160.

CSL’s AGM on 27 October will give investors another chance to hear how its recovery plans are progressing.

The post Fund managers are loading up on CSL shares. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.5% to 8,662.4 points on Friday.

Brokers have lifted their ratings on several ASX 200 shares this week. 

Let’s take a look.

AMP Ltd (ASX: AMP)

The AMP share price is $2.66, down 0.2% today and up 60% over 12 months.

Over the past month, this ASX 200 financial share has ascended 11%.

Macquarie upgraded AMP shares to a buy rating on Tuesday.

The broker has a 12-month price target of $2.92.

This suggests a potential 10% upside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $13.66, down 0.5% today and up 33% over 12 months. 

Over the past month, this ASX 200 gold share has fallen 14%.

This week, Evolution announced its annual general meeting (AGM) will be held on Thursday 26 November.

UBS upgraded Evolution shares to a buy recommendation yesterday.

The broker raised its 12-month price target from $15.20 to $16.

This implies a potential 17% upside ahead.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is $15.79, up 0.3% today and up 3% over 12 months. 

Over the past month, this ASX 200 healthcare share has fallen 2%.

This week, Telix announced a merger with ITM Isotope Technologies Munich SE.

ITM is a global leader in therapeutic radioisotopes.

Telix Pharmaceuticals will acquire 100% of ITM for US$1.65 billion upfront.

RBC Capital upgraded Telix shares to a buy rating this week.

The broker lifted its 12-month price target from $19 to $21.

This suggests a potential 33% upside ahead.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $73.99, up 0.2% today and down 20% over 12 months.

Over the past month, this ASX 200 consumer discretionary share has fallen 11%.

Morgan Stanley upgraded Wesfarmers shares to a hold rating this week.

The broker reduced its 12-month price target from $78 to $70.

This implies a potential 5% downside ahead.

Wesfarmers will conduct its AGM on Thursday 29 October.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is $3.84, down 3% today and up 7% over 12 months.

Over the past month, this ASX 200 gold mining share has edged 3% lower.

This week, the miner released new FY27 guidance.

Ramelius Resources expects gold production of between 205,000 ounces and 225,000 ounces in FY27.

Its estimated all-in sustaining cost (AISC) is A$2,150 per ounce to A$2,350 per ounce.

The miner expects FY27 growth capital expenditure of A$480 million to A$570 million.

Canaccord Genuity upgraded Ramelius Resources shares to a buy call this week.

The broker raised its 12-month price target from $5.70 to $6.15.

This indicates potential capital gains of 56% over the next year. 

The post 5 ASX 200 shares upgraded by experts this week appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Telix Pharmaceuticals, and Wesfarmers. The Motley Fool Australia has recommended Macquarie Group, Telix Pharmaceuticals, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) (Soul Patts) shares jumped after the company announced its FY26 results. They rose 6.2% on the day.

I’m not about to say that the shares are a better value than they were before, but investors learned a number of things about the business from the report that make me think it’s even more attractive.

We already know it’s a leading investment conglomerate that has been operating for more than 120 years.

For me, there are three appealing takeaways.

Cash and fixed income

The business has made a number of asset sales in recent times, which has led to cash becoming 20% of the portfolio. That’s quite a large position, but it’s a deliberate choice by the company.

In June 2026, it divested $1.9 billion of industrial property following a process activated by the Brickworks merger and pre-existing rights held by Goodman Group (ASX: GMG). Soul Patts has put that $1.9 billion into fixed income.

With higher interest rates, the company can now generate a solid return from its new fixed income division. This can be used to actively manage its liquidity, capital flexibility, and risk.

Soul Patts revealed that of its fixed income investments, 69% is invested in global low duration and short-term instruments, while 31% is invested in Australian low duration, short-term instruments, and cash. The investments have an average credit rating of AA, which is high quality.

International investments

Soul Patts has long focused on ASX shares and Australian businesses, but that appears to be starting to change.

There are a wide range of opportunities overseas in different sectors and asset classes, so Soul Patts is looking to partner with high-quality partners to find opportunities.

It outlined that it’s building opportunities in multiple divisions.

In ‘private companies’, it has a total of 15 investments, with four offshore co-investments worth $152.1 million (or 6.7% of the net asset value (NAV) of the segment). It’s also invested in three offshore funds for a total of $105.4 million. Offshore commitments total $577 million across nine relationships, with six added during FY26. It’s targeting mid-market fund sizes of between US$500 million and US$3 billion, where deal flow is bilateral, and leverage is lower.

In credit, its credit book includes 10 offshore fund investments with specialist global managers (22% of NAV). It made five new offshore fund investments during FY26. It noted offshore total commitments of $1.5 billion, including a further eight offshore credit fund allocations of $406 million approved in FY26 and committed in FY27.

In ’emerging companies’, it said it’s building offshore exposure through fund and co-investments with global partners across North America, the UK, and the Asia Pacific.

In ‘real assets’, it made its first international real assets commitment of $28 million to a US energy transition manager, reinforcing its exposure to long-term structural themes such as compute demand and electrification.

It’s fascinating to see the business make such a strong pivot to international investments with external fund managers. It’ll be interesting to see how much this grows as part of Soul Patts’ portfolio and what the net returns are.

If the investment team think this is the right move, it’ll probably work out well; the world can offer a lot more opportunities than Australia alone. Plus, using other managers is a scalable activity for the company.

Dividend payout ratio is reducing

Owners of Soul Patts shares will love to know that the business decided to invest its annual dividend again. That means it has now increased its annual dividend for 28 years in a row.

The payout has been funded by the net cash flow from investments (NCFI). Soul Patts’ NCFI has grown at a faster pace than the dividend, so the dividend payout ratio has been reducing and the dividend has become more sustainable.

The NCFI per share grew by 7.9% in FY26, while the annual dividend per share was hiked by 7.8%. NCFI benefited from a larger average credit book and increased distributions from cash generating businesses in the private companies asset class.

Owners of Soul Patts shares have seen their dividend grow at a compound annual growth rate (CAGR) of 12.4% over the past five years, compared to NCFI per share growth of 15% over the last five years.

The lower the dividend payout ratio becomes, the more sustainable the dividend is and the more the ASX share can invest for more growth.

The post Why I think Soul Patts shares are even more attractive after the FY26 result appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.